Maruti Suzuki India (MSIL) will begin purchasing diesel engines from Fiat’s local unit in January. This will reduce the long waiting list for some of India’s top carmaker’s best-selling models.
Maruti chairman RC Bhargava said: “We’ll eventually get about 100,000 engines a year from Fiat.”
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All diesel engines currently are been sourced from Suzuki Powertrain India.
Suzuki Powertrain will manufacture 300,000 diesel engines this financial year to 31 March 2012, up from 240,000 in 2010. These engines are made using Fiat technology.
Fiat India’s spokesman refused to comment on selling engines to Maruti but said the company “is willing to supply diesel engines to anyone who wants to buy”.
Due to sluggish economic growth in the country, sales of petrol-powered cars are slowing and the rising cost of the fuel has seen automakers scrambling to meet higher demand for more fuel-efficient diesel vehicles.
Purchasing Fiat’s engines will help MSIL meet growing demand for its diesel models.
The demand for diesel vehicles has outpaced petrol due to their higher fuel efficiency and cheaper price. In New Delhi, the cost of gasoline is INR66.42 (US$1.30) per litre compared to INR40.91 for diesel.
Maruti’s Swift and Ritz hatchbacks and Swift Dzire and SX4 sedans are offered with 1.3-litre diesel engines.
Fiat India’s plant can produce 300,000 diesel and petrol engines a year.
